HOOT4: quote, dividends and indicators for Hotéis Othon

Hotéis Othon S.A. is a publicly held Brazilian company in the hospitality sector, with common and preferred shares traded on B3 under the tickers HOOT3 and HOOT4. The company’s history dates back to the early 20th century, when Othon Lynch Bezerra de Mello began operating in the textile trade in 1905, later evolving into a business group active in sugar mills, energy, agribusiness, insurance and, later on, hospitality. The hotel phase began in 1943 with the creation of Companhia Brasileira de Novos Hotéis, as part of the group’s expansion from Recife to the Southeast region. The first hotel, Aeroporto Othon, was opened in 1944 in downtown Rio de Janeiro. In the following decades, especially between the 1950s and 1970s, the chain expanded its presence with the Othon Palace in São Paulo and several properties in Copacabana, consolidating a relevant position in the Brazilian hotel market with domestic capital.

Throughout the 1970s, Hotéis Othon intensified its expansion into higher-standard projects, inaugurating units such as Rio Othon Palace, Bahia Othon Palace, and Belo Horizonte Othon Palace, which placed the chain among the largest in South America in terms of number of rooms. From the 1990s onward, the company also began to operate under a hotel management model for third-party properties, leveraging the know-how accumulated in hotel operations. In the 2000s, it started an international presence through management contracts in countries such as France, Portugal, the United States, Argentina, and Peru. In 2003, it began managing and marketing condo hotels under the Othon Flats brand, later renamed Othon Suítes, expanding its product offering for mid-term stays and the corporate segment.

Hotéis Othon’s current business model is focused on hotel operations with owned hotels, centered on lodging, events, and conferences related to business and leisure travel, catering to both Brazilian and foreign customers. The company operates in a single operating segment – hotel operations – and, after a long period of expansion followed by restructuring, adopted a selective strategy, discontinuing units that did not reach the minimum profitability levels required by the board of directors. This guideline led to the sale of the Aeroporto unit and the closure of hotels in Belo Horizonte and Salvador, as well as the phase-out of managed hotels that had begun to negatively affect cash flow, a process accelerated by the impact of the coronavirus pandemic on revenue and operating results.

The Covid-19 pandemic was an important inflection point for the company. In 2018, Hotéis Othon and certain subsidiaries filed for court-supervised reorganization (recuperação judicial) due to an unfavorable financial situation, and the adverse effects of the pandemic on occupancy and revenue reinforced the need for restructuring. Management then chose to concentrate efforts on assets considered more strategic and profitable. Currently, the company reports maintaining two owned operating units, both located in Rio de Janeiro: Rio Othon Palace (also referred to as Othon Palace Copacabana Rio), an upper-category beachfront hotel, and Savoy Othon Travel (Savoy Othon Lite), an economy-category hotel in the same area. At the same time, it sought to enhance the lodging experience with investments in facility upgrades, room retrofit, and improvements to common areas, such as a rooftop with an infinity pool and renovation of the Skylab restaurant.

The two owned hotels in the chain, located in Copacabana, have complementary positioning. Rio Othon Palace is an upper-category hotel located on the beachfront, with 586 rooms and 11 event rooms, able to cater to corporate and leisure guests, in addition to conferences and conventions. The unit has received significant investments over the last decade, including room upgrades, creation of categories such as Superior Premium, Luxo Frente Mar, and Luxo Frente Mar Família, renovation of event areas, pool and food & beverage spaces such as the Skylab restaurant and Bossa Nova Café. Savoy Othon Lite, in turn, with 145 rooms, operates in the economy segment, located on Avenida Nossa Senhora de Copacabana, a few blocks from the beach, with easy access to shops, restaurants, and the subway, primarily serving guests seeking more competitive rates in a highly attractive tourist area.

Hotéis Othon’s commercial strategy combines direct and intermediated channels, with a sales structure supported by offices and representatives in major cities such as Rio de Janeiro, São Paulo, Belo Horizonte, Brasília, and Porto Alegre. The company uses a computerized reservations center that connects hotels and customers in real time, as well as extensive integration with global distribution systems (GDS) such as Amadeus, Sabre, Galileo and others, along with distribution platforms such as Ominibees, OTAs (online travel agencies) and B2B channels. Booking.com, Decolar.com, Expedia, Grupo Keytel and CVC Corp are among the main commercial partners, accounting for a significant share of revenue. At the same time, the company has been strengthening direct sales through its own website and reservations center, supported by investments in CRM, websites, and social media presence, with a focus on channeling a growing portion of demand to higher-margin channels.

Hotéis Othon’s customer profile reflects the location and positioning of its assets in Rio de Janeiro. The company operates in both leisure and corporate tourism, with a significant share of guests coming from the state of São Paulo, which remains the main geographic source of business, especially in the corporate segment. In recent years, there has been an increase in the share of guests from Rio de Janeiro itself, in line with the trend toward local travel. The foreign customer base is diversified, with significant revenue from countries such as Argentina, Chile, the United States, France, the United Kingdom, Colombia, Uruguay, Italy, and Peru. In 2025, foreign guests accounted for the majority share of net revenue, reinforcing the company’s exposure to international tourist flows to the city of Rio de Janeiro.

From an operational standpoint, the company tracks performance indicators typical of the hotel sector, such as occupancy rate, average daily rate (ADR) and RevPAR, with fluctuations associated with tourism seasonality in Rio de Janeiro and specific events. In the recent period, management has sought to increase margins through price adjustments, greater sales via online channels, increased direct sales and cost control. The average occupancy of the units in 2025 showed variations between the upper-category and economy hotels, with Savoy Othon achieving higher annual average occupancy levels, reflecting its positioning in the budget lodging segment in a market with strong demand. The company remains positioned in the national ranking of hotel chains by number of rooms, remaining among the largest organizations focused on hotel operations concentrated in a high-visibility tourist destination.

On the regulatory front, Hotéis Othon S.A. is subject to supervision by the Brazilian Securities and Exchange Commission (CVM), operating in the Brazilian capital markets through the HOOT3 and HOOT4 shares listed on B3. Hotel activities, by their nature, involve local licenses and permits typical of the services sector, although the company notes, in its relationships with suppliers and in the acquisition of inputs, that it is not subject to specific governmental regulation regarding raw materials. Foreign regulation does not play a central role in running the business, as operating transactions predominantly follow Brazilian law.

Regarding environmental, social and governance (ESG) practices, Hotéis Othon reports adopting a series of sustainability-related initiatives, even though it has not, as of the indicated date, published a structured sustainability report. Among the actions mentioned are internal environmental awareness programs for employees, focusing on reducing water waste and carrying out selective waste collection, which is handled by a specialized company. The company participates in initiatives such as World Cleanup Day for Beaches, in partnership with civil society organizations, involving employees and their families in cleanup and environmental education activities. On the social front, it develops actions such as the Cardápio Solidário (Solidarity Menu) project, in partnership with Instituto da Criança, through which part of the revenue from selected dishes is allocated to social projects. The company also maintains the Othon Verde program, which encourages guests to space out linen changes, reducing water, energy, and chemical consumption, as well as process automation initiatives to reduce paper use and the adoption of lower-impact materials for communication and customer service items. These practices seek to integrate operational management with environmental and social concerns, in parallel with the group’s economic and operational restructuring.